An Increase in the Nominal Interest Rate Creates a ________

question 73

Multiple Choice

An increase in the nominal interest rate creates a ________ the money demand curve, and an increase in real GDP creates a ________ the money demand curve.

• A) movement down along; leftward shift of
• B) rightward shift of; movement up along
• C) movement up along; rightward shift of
• D) leftward shift of; rightward shift of

---

Definitions:

Fees Earned

Income earned from providing services or performing work for clients or customers.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, thereby preparing the accounts for the next accounting period.

Journalized

The process of recording financial transactions in a company's journal, detailing the accounts affected by each transaction.

Adjusting Entries

Are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, for the purpose of financial reporting accuracy.